Santosh Math created FINERACT-282:
-------------------------------------
Summary: Backdate before Interest Waiver corrupts loan balances
Key: FINERACT-282
URL: https://issues.apache.org/jira/browse/FINERACT-282
Project: Apache Fineract
Issue Type: Bug
Components: Loan
Reporter: Santosh Math
Assignee: Markus Geiss
Reported by Sander at https://mifosforge.jira.com/browse/MIFOSX-1498
Original Description:
When waiving interest on a loan the outstanding interest and balance is reduced
by clearing outstanding interest on past instalments and if applicable future
instalments (as expected). However when a payment is now backdated to a date
before the interest waiver, interest is that was waived on those instalments is
'activated' again and the payment is allocated to it.
In the attached screenshot #1 is the 'clean' schedule of the loan with 4.11 in
interest due. The total due on the loan is 254.11. In the screenshot #2 the
interest has been waived per the 1st of June, leaving a loan balance of 235.32
(screenshot #3).
Now when a new transaction is entered, for the 15th of May (so before waiver),
of 15$ , the expected loan balance would be 220.32, however the payment
'reopens' the interest for the instalments it is covering (see screenshot #4)
and repays them. As a result the total outstanding is 220.48 (one instalment
interest has been paid, but was not part of the balance before). And also when
the sum of all transactions is made manually it no longer adds up (screenshot
#5) to the system generated balances.
Because of the way MifosX handles the loanschedules and transactions, the
waiver has automatically been reversed when processing the backdated payment
(which is chronologically before the later payment) and then applies the waiver
again later, at which point the interest due is fewer than the waiver is for.
This results in an adjustment of the overall loan, and also brings up a
situation whereby the loan summary data is no longer aligned with the
transactions. And the accounting data is also out of sync, as the accrued
interest no longer adds up to the waived + paid interest on the loan.
As the waiving of interest normally is a process that can work both backwards
(open installments from before) and forwards (future installments), we would
expect that the interest for the prior installments would remain waived.
--
This message was sent by Atlassian JIRA
(v6.3.4#6332)
